Careers centre - Invesco

Invesco Perpetual Children’s Fund
Invesco Perpetual Children’s Fund
Who knows what our children will want to be when they grow up? Will they want to go to
university? Get married? Buy a house perhaps? One thing’s for sure; at some point in their
future they’ll need a financial boost, and they’ll be grateful if it comes from someone who has
always had their best interests at heart. At Invesco Perpetual we’ve created a fund especially
for those who want to give the children in their lives a helping hand financially, that uses
hand-picked UK stockmarket investments with the potential to grow long term rewards.
The Invesco Perpetual Children’s
Fund aims to achieve longerterm capital growth through a
portfolio of investments in UK
companies.
The basics
The Invesco Perpetual Children’s Fund is what
is known as an ICVC. An ICVC, or ‘Investment
Company with Variable Capital’, is a collective
investment scheme similar to a unit trust,
that allows you to pool your money with
other investors. Depending on the aim of the
fund you choose, this pool of money is then
invested in shares, bonds or other securities by
a professional fund manager. When you invest
in the Children’s Fund, your investment will be
used to buy shares in companies listed on the
UK stock exchange.
However, accounts can be set up to
reflect the name of the child that you intend
to benefit. Once they’re 18, you can reregister the investment in to their name.
In the meantime, you’ll receive 6-monthly
statements and also birthday cards to send
on until they’re 11.
Please note that the Children’s Fund is not a
trust arrangement. The investment will belong
to you unless or until you decide to re-register
the investment.
Making an investment
Please read the relevant, most up to date
share class-specific Key Investor Information
Document, along with the Supplementary
Information Document, which detail relevant
features of the fund. The latest versions of
these documents are available from our
website or by contacting us. Please also read
the additional information on the back page
of this brochure. When you are happy with the
Please note, as with any stockmarket investment investment you are making, fill in the Children’s
Fund application form, and return it when
the value of investments and any income will
you’re ready.
fluctuate (this may partly be the result of
exchange rate fluctuations) and investors may
not get back the full amount invested. Past
If at any point you would like an
performance is not a guide to future returns.
up-to-date fund strategy or performance
information, this is available on our website
Investment options to suit you
www.invescoperpetual.co.uk,
You can invest in the Children’s Fund in the
or by calling us on 0800 085 8677.
way that best suits you – with a one-off lump
Telephone calls may be recorded. If you’re
sum or with regular contributions.
planning to make a regular monthly/annual
investment, you’ll need to complete the
If you want to invest a lump sum, you can
relevant section of the form and send us a
start with as little as £50. But if you’d prefer
cheque (payable to Invesco Fund Managers
a regular arrangement, you can invest
Limited) to cover the first month’s/annual
monthly from as little as £20, or annually
contribution. If you’re investing a one-off
from as little as £50 – ideal for Christmas and
lump sum, please enclose your cheque.
birthdays! Whatever you decide, you can top
up the fund at any time with a lump sum of
If there is anything you are unsure of, please
£25 or more.
speak to your financial adviser or call us.
At Invesco Perpetual, our fund managers
are experienced at finding investment
opportunities, whatever the market
conditions. Their management approach is
truly active, building investment portfolios
based on rigorous research, to identify
companies which they believe are most likely
to provide the strongest returns.
ICVCs are only available to applicants
aged 18 or over, so you’ll have to buy
shares in the Children’s Fund in your name and
the investment will therefore belong to you.
General information and tax
Further information
The following information is based upon our understanding of tax law and practice and
is for guidance only. If you are in any doubt you should discuss your personal situation
with a professional adviser or HM Revenue & Customs (HMRC).
As with other UK authorised ICVCs investing in shares, income distributions carry a tax
credit equivalent to 10% of the grossed-up amount. The tax credit will meet the tax liability
of starting and basic rate taxpayers. Higher rate taxpayers will have extra income tax to
pay. In the case of the Invesco Perpetual Children’s Fund, all distributions are automatically
accumulated within the fund, and a tax voucher is provided as evidence of the tax credit.
This will be sent to the registered adult holder once a year with the Short Reports for the
fund. Who is treated as liable to tax on the income depends on the amount, whether or
not the capital was provided by the parents and, where it was not, on the terms on which
the capital was provided. As far as HMRC is concerned, the name in which the holding is
registered is not necessarily the significant factor.
Investor Services
Telephone 0800 085 8677
Gift of capital from living parent(s) to a child
Income is taxed as the parents’ own until the child turns 18 unless it is under £100 per annum.
Gift of capital from another individual to a child
Where the gift is an outright one, including capital acquired outright from an inheritance,
the income from that capital is taxed as the child’s own. Where the gift is not outright, for
example where the donor retains some form of interest in the capital by being able to take
the funds back or the gift is into a formal trust, the position is likely to be different and
specialist tax advice should be sought.
Capital Gains Tax where the holding is a gift
When all or any of the holding is sold, any potential capital gains liability may be the
responsibility of the child, and subject to the usual taxation rules and exemptions. If you are in
any doubt you should check your personal situation with a professional adviser or HMRC.
Transfer when child reaches maturity
Once the child reaches 18 years of age, you can transfer the holding into their name. This
will not be carried out automatically, and the registered adult will need to send us written
instructions before we can proceed with the transfer. Subsequently, the child will have
full control of the holding. Tax levels and reliefs are those currently applicable and may
change. The value of any tax advantage depends on individual circumstances.
Buying and selling shares
The minimum monthly contribution is £20, the minimum annual contribution is £50, and
the minimum lump sum investment is £50. You can add to the account at any time, by a
minimum of £25. If you wish to make a regular monthly or annual investment, please send
us a cheque (payable to Invesco Fund Managers Limited) with your application form to
cover the first month’s/annual contribution. Shares in the Invesco Perpetual Children’s Fund
will be purchased at the next valuation point after receipt of your instructions.
Regular contributions can be amended at any stage, provided that your monthly
contribution does not fall below £20. You may stop your regular contributions at any time
without penalty, but you must ensure that at least £50 remains in your account or we
reserve the right to sell the remaining shares and pay the proceeds to you. Any instructions
to amend or stop your Direct Debit must be received no later than 5 business days before
the collection date. For lump sum investors, once we receive and process your application, a
contract note will be dispatched. If you wish to make regular monthly or annual payments,
please complete the Direct Debit mandate on the application form. No certificates will be
issued for regular savings plans but you will be sent a statement every six months. To sell
all or part of your Invesco Perpetual holding, simply write to us with your instructions and
we will normally send you your sale proceeds by cheque to your registered address, or
directly to your bank account (subject to availability and to satisfactory verification of your
bank details) normally on the fourth business day after we carry out your instructions. Your
holding will be sold at the first available valuation after receipt of your written instructions.
The annual distribution date is 28 February in respect of the period ending 31 December.
However, please note that net income is automatically reinvested to increase the share value.
Registration
It is not possible for children under the age of 18 to hold this investment in their own name.
It is therefore necessary for the holding to be registered in an adult’s name, and the account
designated with the name of the child benefiting from the investment.
www.invescoperpetual.co.uk
The value of investments and any income
will fluctuate (this may partly be the result
of exchange rate fluctuations) and you may
not get back the full amount invested. Past
performance is not a guide to future returns.
Current tax levels and reliefs may change.
Depending on individual circumstances, this
may affect investment returns.
This brochure should be read in conjunction
with the relevant most up to date share
class-specific Key Investor Information
Document, along with the Supplementary
Information Document. The latest versions
of these documents are available from our
website or by contacting us.
Where Invesco Perpetual has expressed
views and opinions, these may change.
Telephone calls may be recorded.
Administration centre address:
Invesco Perpetual
PO Box 11150
Chelmsford
CM99 2DL
Invesco Perpetual is a business name of
Invesco Fund Managers Limited
Authorised and regulated by the
Financial Conduct Authority
Registered address 30 Finsbury Square,
London, EC2A 1AG, UK.1
Effective from 1 February 2014, Invesco
Fund Managers Limited will change its
registered address to Perpetual Park,
Perpetual Park Drive, Henley-on-Thames,
Oxfordshire RG9 1HH.
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